Daily Brief Equity Bottom-Up: Whitehaven Coal June Quarterly: 45% of Mkt Cap in Cash and more

• Whitehaven Coal (WHC AU) released its June Quarterly. The company is in blackout (starting July 1st) till its release of annual results on August 24th, 2023.
• June quarter OCF was 435 mn AUD ( Avg Coal Px 177 USD/ton), and net cash on the balance sheet was 2.65 bn AUD representing 45% of market capitalization.
• To complete its buyback program, 147 million shares remain left to repurchase (current o/s shares 836 mn). 196 million shares have been repurchased so far since March 2022.

• The company has shifted its growth driver from rail equipment to EV parts supplier.
• Q1 23 growth came from emerging equipment coming to the rescue at a double digit rate when the train equipment segment recorded a slight decrease. 
• Compared to last year, the company is trading at a lower valuation, yet its key growth driver has a better and more sustainable quality. 

• Max Healthcare Institute (MAXHEALT IN) reported robust Q4 performance, with revenue and EBITA increasing 26% and 44%, YoY, respectively. Growth was driven by increase in ARPOB and occupied bed days.
• Max commissioned new 92 beds oncology block at one of its network hospitals in March. New oncology block contributed positively to revenue and EBITDA in the first month of launch.
• Max is on track to double its bed capacity in next 5–6 years. Apart from ongoing brownfield expansions, the company has land parcels with potential to add 1,000 beds.

• Porton’s performance declined significantly in 23H1 compared with high base last year, because most of Pfizer’s COVID-19 big orders have been completed. Porton’s performance in 2023 would be under pressure.
• Porton isn’t a first-tier CXO and lags behind industry leaders in terms of new businesses (CGT/ADC CXO). Valuation of entire CXO sector and Porton hasn’t yet reached an inflection point.
• Market’s expectation for CXO would decrease and then bottom out in 2023H2. Whether CXO’s performance would rebound in 2024 still needs to wait for the turnaround in macro environment.

The Diverse Income Trust (DIVI) has two co-managers, Gervais Williams and Martin Turner at Premier Miton, who employ a genuine all-cap UK equity income strategy. DIVI’s long-term total returns are a function of its income and above-average income growth and although valuations can vary, over time they become less important as they trade in a range. While the trust’s performance has been disappointing over the last two years as stocks have derated and AIM stocks have underperformed, its income profile remains robust; hence, the managers are anticipating an improvement in DIVI’s performance. The trust has delivered a rising level of regular annual dividends throughout a range of market conditions.

• Organto announced the launch of ORO, a brand focused on premium non-GMO fruits and vegetables.
• This morning, Organto Foods (OGO:TSXV) announced the introduction of its latest innovative brand offering, ORO.
• ORO focuses on premium non-GMO fruits and vegetables, complimenting the I AM Organic brand (organic fruits and vegetables) and =Awesome Fruits (mid-tier non-GMO fruits).

• Ally Financial is about to release its Q2 2023 earnings tomorrow as tightening within the auto loans market continues.
• The deposit mix will be a key area to watch as it will have a major impact on the company’s return on tangible common equity.
• The company is expected to report its second quarter of 2023 on Thursday.